Markets reacted to sharp selling from FII in the futures segment with FII selling Rs 8,000 crore and Rs 4,000 crore in the cash segment forcing Nifty to re-test 19,600 with the formation bearish engulfing line on a daily candlestick chart. For Indian markets, key levels to watch would be the USDJPY movement as a fall in USDJPY would have enough potential to force the Nifty below 17,000.
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